Energy, EU – Baltic States, Investments, Legislation, Lithuania, Markets and Companies

Companies from 10 countries, including Canada, France, UK, Austria, Italy, the Czech Republic and Estonia, were interested in the tender for the upgrade of over 44,000 street lights in the capital city of Lithuania. The tenders were assessed by Danish and Lithuanian experts.

The successful bidder, the international company Gemmo S.p.A. from Italy, is considered today’s leader in the renovation and maintenance of lighting systems. “Our company has implemented projects not only in Italy, but also in the United States, Belgium, the United Arab Emirates, Romania, and Argentina. We maintain lighting systems in more than 20 airports, 140 kilometres of tunnels, and 30 healthcare complexes. We work with 120 municipalities maintaining more than 350,000 street lights. We are pleased to be able to implement this important project in Vilnius,” said Mauro Gemmo, executive director of Gemmo S.p.A..

Gemmo S.p.A. has agreed to install cost-effective and modern LED lamps within two years in Vilnius. The company will also operate and maintain the street lighting system for 18 years. The modernisation of the street lighting will result in a reduction in energy consumption of up to 70 per cent and the total investment will be EUR 31 million.

Experts from Invest Lithuania provided consultancy to the municipality at each stage of the project. They not only helped to prepare the tender documents, but also to select investors and to agree on the final financing terms.

Jonas Kimontas, senior project manager at Invest Lithuania, believes that a successful partnership between Vilnius municipality and Gemmo S.p.A will encourage other municipalities to implement public-private partnership projects, and will also provide more opportunities for businesses to work with the public sector. “Projects like these not only bring direct benefit to citizens, but also allow private investment in public services, thereby increasing the efficiency of local government operations. Other municipal governments of major Lithuanian cities are already considering similar projects, with one planned in Kaunas, the second largest city in Lithuania. Approximately 150,000 street lights need to be upgraded in Lithuania, so I am sure that the partnership between Vilnius municipality and Gemmo S.p.A. will serve as an example of successful cooperation for other municipalities”, Mr Kimontas said.

A breakthrough in public-private partnership projects can be expected as a result of the opening up of new financing opportunities. Funding for projects such as these can be provided from the European Energy Efficiency Fund, the Nordic Investment Bank and the European Bank for Reconstruction and Development. Opportunities for support from European Union financial instruments are also planned in the period of 2014-2020. Experts from Invest Lithuania not only provide consultancy to public sector bodies in PPP project preparation, but also provide information and assistance to international companies interested in PPP projects in Lithuania.